I apologise in advance for what is a very basic question for someone with a maths degree (it was a long time ago!).
I have 2 distributions that look something like this (but with much bigger samples), in the form of (probability,outcome). The outcome is literally just a number.
Distribution 1...
Thank you! 1p was the extreme example I was giving to try and see if it was even worth it for that. In the actual situation it could end up costing more like £20 to play which would start to make it a lot less likely to be worthwhile.
Sadly I don't have any data on the variance of the slot...
So ignoring any human's risk aversion, we need more information about the slot machines payout structure (not just the return to player) to figure out how much you would pay to play in my example?
Thanks for the response! So you're saying if you used stochastic integration you could work out exactly the amount you would pay to play this game? Or would you need more information about the game other than its Return To Player?
It's obvious that if you played through the £7000 with your own...
Hi there, I was recently having a discussion with people and they were adamant they would always pay for a game with negative EV.
The example was "Would you pay 1p for £200 free play of a 97% RTP slot machine with 35x wagering?"
So you pay 1p and get given £200 risk free to play on a slot...